Crypto In Australia

In the last 10 years, blockchain has become more popular among the ordinary people who are interested in new technologies and want to move with the times. Lately, it has begun to displace the existing markets worldwide. Many investors’ attention was attracted by blockchain and crypto due to the opportunities it provides them with. That’s the main reason why this sphere gets explored, studied, and invested in.  

We have already told you about cryptocurrencies in different countries including Nigeria, Mexico, India, Russia and USA. Today we are going to discuss the status and relevance of crypto in Australia. Put your sunscreen on, let’s dive into it!     

The popularity of cryptocurrencies in Australia

Have you ever heard of building a $100 million Metaverse Research and Development Center designed to give a whole new user experience? Or a mayor suggesting to use crypto as a means of paying taxes? Well, this is the real news of the Australian crypto and blockchain sector, and it is happening right now. On our planet. In the 21st century.

Sure, Australia is actively implementing cryptocurrencies, being a role model for other countries which are not involved yet. To see if Australians are real crypto enthusiasts, we have to check the relevant statistics.

Finder, the analysis website says that Australia took the 3rd place on a global scale for crypto adoption. In accordance with the latest surveys, almost 18% of Australians possess cryptocurrencies. Seems like this topic is one of the hottest on the continent right now. The reason for such an acceptance probably is the government being visibly open to cryptocurrencies and blockchain development.

According to the Finder’s survey, almost 42 000 individuals across 22 countries joined the research. 1,003 of these individuals are Australians, and 17.8% of them have crypto. This survey represents the country’s cryptocurrency ownership statistics, and it’s much higher than the worldwide average of eleven percent.

The most owned coin turned out to be Bitcoin (51%). The less popular currencies are Ethereum (40%), Dogecoin (24%), Cardano (20%) and other assets (28%):

As we could find out from the stats, of those Australians owning crypto, sixty-four percent are men and the rest are women.

The survey obviously shows the uptrend of cryptocurrencies and blockchain, which are gaining popularity at a high speed. Now, the main question concerns the regulation of crypto in Australia. Let’s find out how this whole mechanism works and whether citizens have difficulties using cryptocurrency.

Modern crypto regulations and taxes in Australia

Nowadays, crypto has an official legal status in Australia and is taken as a regular property. The laws concerning crypto also appear to be very advanced — the legitimacy makes it a subject to the Anti-Money Laundering and Counter-Terrorism Financing Act of 2006. 

These regulations oblige crypto exchanges to check in through the Australian Transaction Reports and Analysis Centre and confirm their customers, maintain records and fulfill government reporting requirements.

Talking about taxes. BTC, and crypto assets sharing its features, are considered to be subject to Capital Gains Tax (CGT). 

In 2021, the Australian Taxation Office (ATO) reinforced its implementation of violations of the CGT. Considering the rules when ATO finds out a report violation regarding earnings from cryptocurrencies, it has a right to take a penalty of 75% of outstanding tax liability in addition to the usual taxes and shares.

In 2022, ATO shared a message with crypto investors. In line with it, capital profits and losses are obliged to be declared each time a digital asset is sold (including NFT).

What’s also interesting about the Australian tax system:

1. Australian citizens are not taxed while buying crypto, as long as the purchase is committed via fiat.
2. Investors have an opportunity to get a half-cut in capital gains tax in a situation when they hold an asset for 1 year or more.

Future plans on crypto regulation

At the end of 2021, Australian Federal Treasurer Josh Frydenberg revealed a program for radical payment renovations. It includes a dedicated licensing framework for local crypto exchanges in order to improve regulatory protection for purchasing and selling cryptocurrency. The reform will as well cover the businesses that are storing crypto on behalf of customers.

The Treasury also published a proposal of opportunities for the Australian CBDC and offered a list of regulatory milestones to achieve by late 2022. This, as they say, would defend users, reduce pressures for small businesses, and make the regulations more understandable.

Therefore we see that regulations concerning crypto in Australia usually show a quick and modern approach. Check out the latest article concerning taxes for BTC in this country.

Conclusion

As it is clear from the article, cryptocurrencies are becoming increasingly popular worldwide, and in countries like Australia they are already smoothly occupying positions along with fiat.

The Australians decided to become one of the first to introduce cryptocurrencies into their lives and create special laws, equating crypto to ordinary property. It seems that it has always been like this, but we are sure that it’s only the beginning of the mass adoption of crypto and blockchain technologies.